HAS THE CORRECTION BEGUN?

MLPS DOWN 2 DAYS IN A ROW(GASP!)

2 down days in a row and yesterday we finished just off the lows of the day. Could this be the beginning of a long awaited pullback...or not? Well the jury i guess is still out but if we get another down day today and break below the 70% rsi line I think we can safely say we're finally correcting. The 34 day moving average is sitting at 321 and rising so we're sitting 8 points above that. We last came down to that level back in early January 2007.

So if this is indeed the long awaited correction what do we buy? My view would be to stick with those MLPS that have been growing their distributions from quarter to quarter but on the other had if you believe that the hic-cups that have occured in Crosstex (XTEX,XTXI) Hiland LP (HLND) and Atlas Pipeline (APL) are just single quarter events...we'll they have already had their blow-ups so this could be an opportunity to pick up MLPS that...if they resume distribution growth later this year...could emerge as the next round of leadership.

This morning we have a downgrade of NuStar GP Holdings as AG Edwards takes it from buy to hold...and after a 50% move it sort of makes sense i guess. Steifel Nicholas is starting Cheniere LP at a buy.

Some news from last night. General Marine (GMR) came out with earnings which looked soft. The stock traded down 2 bucks in after hours so we'll see if that carries over today.